Lithium metal demand is surging. For it’s boosting shares of the companies linked to mining and also manufacturing the light metal. Especially used in electric-car batteries.
Global X Lithium & Battery Tech, an exchange-traded fund. For it’s of the 27 biggest companies linked to the light metal. In addition, it has increased 65 percent. Most surprisingly, this in the past 18 months. Thereby outperforming stock indexes of all the world’s most-developed economies. More noteworthy, this is according to data compiled by Bloomberg.
Among those most heavily weighted in the Globe X fund are companies including Samsung SDI Co. and Panasonic Corporation. All which make the lithium-ion cells used in electric-car batteries. As well as automobile maker Tesla Inc.
Global X Lithium fund has outperformed benchmark indexes
Investment surges in mining and processing
Sales of electric cars rocketed to 2 million in 2016 after being virtually non-existent just five years ago. Mainstream carmakers from Renault-Nissan Motor Co. to Volkswagen AG are pushing ahead with emissions-free vehicles.
Manufacturing demand for lithium metal is feeding orders at mining companies. For that’s including Sociedad Quimica y Mindera de Chile SA and Albemarle Corporation. All which also factor among the top 10 holdings at the Global X ETF.
Shift Toward Lithium
The world is witnessing a shift towards sustainable modes of transport. As well as electric cars are leading the way. The demand for electric cars is rising. So this has led to a surge in the demand for lithium metal. Lithium is a key component of batteries that power electric vehicles. So companies are investing heavily in developing technologies to meet this demand.
This trend is exciting because it represents a step towards a cleaner and greener future. With the rise of electric cars, we are moving away from fossil fuels and towards renewable energy sources. This shift is also creating new opportunities for innovation and entrepreneurship. Companies are developing new technologies to make batteries more efficient. Also longer-lasting and cheaper.
It’s not only car manufacturers who are benefiting from this trend. The demand for lithium is also driving growth in the mining industry. Mining companies are investing in new technologies to extract lithium from the earth more efficiently and sustainably. This has created new jobs and economic opportunities in regions where these resources are abundant.
The future of electric cars looks bright. So it’s easy to see why. They are not only better for the environment. Yet, also more cost-effective in the long run. Especially as more people switch to electric cars. For the demand for lithium will continue to rise. It’s leading to further advancements in technology and sustainability.
In conclusion, the surge in demand for lithium metal is an exciting development that is pushing us towards a cleaner, greener future. This shift towards electric cars represents an important step in our efforts to combat climate change and create a more sustainable world. Companies investing in new technologies to meet this demand are creating new opportunities for innovation and entrepreneurship, while mining companies are creating new jobs and economic opportunities. The future of electric cars is bright. Finally and we can’t wait to see what’s next!
Source: Bloomberg Technology,
By Jonathan Tirone, June 22, 2017, 12:00 AM EDT